A good agency relationship starts with a clear agreement. A confusing contract is not just a legal annoyance. It can lock you into paying for work you do not want, or leave you without your own accounts if you part ways. This is a plain-English checklist of what to look for. It is general information, not legal advice, so have a lawyer review anything important.
Scope of work
The contract should say exactly what the agency will do. Look for specifics, not slogans:
- Which services are included, such as ad management, creative, landing pages, reporting, and calls
- How many campaigns, platforms, or locations are covered
- How often work is done and reviewed
- What is not included, and what costs extra
Vague language like "digital marketing services" leaves room for disagreement. If something matters to you, make sure it is written down.
Fees and payment
Check:
- The monthly or project fee, and the payment dates
- Any setup fee
- Whether fees change as your ad spend changes
- Who pays the ad platforms. Ideally you pay Google and Meta directly from your own account so you can see the spend
- Charges for extras, such as new landing pages, additional creative, or extra reporting
- Late fees and price increases
Term and termination
This is where many owners get stuck. Look for:
- Initial term. How long are you committed?
- Renewal. Does the contract renew automatically, and how much notice must you give to stop it?
- Termination rights. Can you leave if results or service fall short, and what are the exit costs?
- Wind-down. What happens to active campaigns and your accounts on exit?
A short initial period with clear review points is easier to live with than a long lock-in.
Ownership and access
Make sure the contract states that:
- Your ad accounts, analytics, and website are in your name, with the agency given access
- You keep ownership of your data, customer lists, and content
- You own, or are licensed to keep using, the creative made for you, including after the contract ends
- You have access to all accounts at any time
If the agency owns the accounts, you may lose your history and need to start from scratch if you leave.
Reporting and communication
Look for commitments such as:
- A monthly report, and what it includes
- Meetings or calls on a regular schedule
- A named contact and response time expectations
Reporting should connect to results you care about, such as leads and sales. You can sanity-check profitability with our free ROAS Calculator.
Results and guarantees
Be careful with promises. Honest contracts talk about the work the agency will do, not guaranteed rankings or returns, because no one controls Google, Meta, or your competitors. If a contract does include performance terms, make sure they are clear and measurable, with defined start dates and definitions of what counts.
Confidentiality and data
Check how the agency will handle your business information and customer data, and whether they work with other businesses in your category in the same area. Understand how they will protect access to your accounts.
Responsibilities on both sides
A contract should say what the agency needs from you: access, content, approvals, and timely feedback. Delays on your end can slow results, so be realistic about what you can provide.
Red flags
- Auto-renewal with a very short cancellation window
- Long minimum terms with no performance review
- The agency owning your accounts or content
- Unclear fees for ad spend
- Guarantees that sound too good to be true
- Refusal to explain a clause or to let your lawyer review it
- High-pressure pushes to sign immediately
Questions to ask before you sign
- Can I terminate with notice, and what will that cost?
- Will all accounts be in my name?
- What exactly is included in the fee?
- How will I be updated, and how often?
- Who will work on my account?
- Can my attorney review this?
Frequently asked questions
Not always, but it should come with clear value and an exit if service is not delivered.
Yes. Reasonable agencies expect questions and may adjust terms.
For anything significant, it is wise to have a lawyer review it.
What to do next
If you want to see what a clear, fair agreement looks like, book a free strategy call and ask us about our terms. You can also learn more about how we work on our about page.
